18 November 2005 – LAWFUEL – Banking law, law, law firm news – Simmons & Simmons has advised Barclays Global Investors North Asia Limited on one of the first Exchange Traded Funds (“ETFs”) to track the A share markets in China. This is the only such fund listed on The Stock Exchange of Hong Kong (“SEHK”).
The iShares FTSE/Xinhua A50 China Tracker (“A50 China Tracker” stock code: 2823), begun trading on the SEHK today, on Thursday, 18 November 2004. The fund builds on the success of the previous ETF launched by Barclays Global Investors in Hong Kong, the first commercial ETF in the SAR, which Simmons & Simmons also advised on.
The A50 China Tracker is authorised by the Hong Kong Securities and Futures Commission and is the first ETF to offer Hong Kong’s investors exposure to the A share markets. The A50 China Tracker is designed to track the FTSE/Xinhua China A50 Index, comprising the top 50 issuers whose shares trade on the Shanghai and the Shenzhen stock exchanges in the PRC.
The deal was led by partner Paul Li and consultant Rolfe Hayden.
Rolfe Hayden commented:
“We are delighted to have represented Barclays Global Investors in their establishment of this groundbreaking Exchange Traded Fund. The fund is the first ETF in Hong Kong that will track an A share index. This follows the work recently done with our Paris office, enabling Barclays Global Investors to offer iShares to the public in France for the first time. We are particularly pleased to work again with Barclays Global Investors, one of the world’s largest money managers, on this matter”.